PROBLEM 14?10 Prepare a Statement of Cash Flows; Free Cash Flow [LO14?1, LO14?2, LO14?3]Joyner Company?s income statement for Year 2 follows:Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . $900,000Cost of goods sold . . . . . . . . . . . . . . . . . 500,000Gross margin . . . . . . . . . . . . . . . . . . . . . . 400,000Selling and administrative expenses . . . . 328,000Net operating income . . . . . . . . . . . . . . . 72,000Gain on sale of equipment . . . . . . . . . . . 8,000Income before taxes . . . . . . . . . . . . . . . . 80,000Income taxes . . . . . . . . . . . . . . . . . . . . . . 24,000Net income . . . . . . . . . . . . . . . . . . . . . . . $ 56,000Year 2 Year 1Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000 $ 21,000Accounts receivable . . . . . . . . . . . . . . . . . . 250,000 170,000Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,000 260,000Prepaid expenses . . . . . . . . . . . . . . . . . . . . 7,000 14,000Total current assets . . . . . . . . . . . . . . . . . . . 571,000 465,000Property, plant, and equipment . . . . . . . . . . 510,000 400,000Less accumulated depreciation . . . . . . . . 132,000 120,000Net property, plant, and equipment . . . . . . . 378,000 280,000Loan to Hymans Company . . . . . . . . . . . . . 40,000 0Total assets . . . . . . . . . . . . . . . . . . . . . . . . . $989,000 $745,000Accounts payable . . . . . . . . . . . . . . . . . . . . $310,000 $250,000Accrued liabilities . . . . . . . . . . . . . . . . . . . . . 20,000 30,000Income taxes payable . . . . . . . . . . . . . . . . . 45,000 42,000Total current liabilities . . . . . . . . . . . . . . . . . . 375,000 322,000Bonds payable . . . . . . . . . . . . . . . . . . . . . . 190,000 70,000Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . 565,000 392,000Common stock . . . . . . . . . . . . . . . . . . . . . . 300,000 270,000Retained earnings . . . . . . . . . . . . . . . . . . . . 124,000 83,000Total stockholders? equity . . . . . . . . . . . . . . 424,000 353,000Total liabilities and stockholders? equity . . . $989,000 $745,000